10:45 AM EDT, 08/15/2025 (MT Newswires) -- Osisko Development ( ODV ) on Friday said it had closed its previously announced private placement of near 99.1-million units at US$2.05 apiece for about US$203 million, a transaction that opened the door for Double Zero Capital LP to take a near 16% stake.

On the offering, ODV said it is comprised of a "bought deal" brokered private placement of near 58.6-million units at US$2.05 for about US$120 million, and a non-brokered private placement of 40.5 million units at US$2.05 for nearly US$83 million.

The non-brokered offering includes an approximate US$75 million subscription by Double Zero, a Delaware investment firm, representing about 15.4% of the issued and outstanding common shares of the company immediately following the closing of the offering, on a non-diluted basis.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder thereof to purchase one common share, at a price of US$2.56 per warrant share on or prior to August 15, 2027 (being, 24 months from the date of issuance), subject to acceleration.

The company intends to use proceeds to fund the broadly distributed equity portion of the capital required to construct the Cariboo Gold Project and for general corporate purposes. The company believes the net proceeds of the offering, together with the net proceeds of the US$450 million project loan credit facility with Appian Capital Advisory Limited announced on July 21, 2025, plus indications of interest from commodity traders seeking high-quality concentrate off-take, and other potential financing arrangements, will provide sufficient funding to construct the project.

In connection with its subscription in the non-brokered offering, Double Zero acquired ownership and control, directly and indirectly, of 36.6 million common shares and 18.3 million warrants, which are subject to a blocker provision. Prior to the offering, Double Zero did not hold any securities of the ODV. After giving effect to the offering Double Zero holds approximately 16.0% of the issued and outstanding common shares on a non-diluted basis (approximately 21.9% on a partially-diluted basis, assuming full exercise of the warrants held by Double Zero). Friday's statement noted the warrants issued to Double Zero are subject to a blocker provision, such that Double Zero may not exercise any warrants that would result in it holding (directly or indirectly) over 19.9% of the issued and outstanding common shares (after giving effect to such exercise), unless requisite shareholder, stock exchange and regulatory approvals have been obtained.

Osisko also agreed to provide Double Zero with rights to nominate one director to its board, customary pre-emptive rights and top-up rights in respect of certain acquisitions. Pursuant to the terms of the investor rights agreement, Double Zero has agreed to provide certain voting support to the company.

Shares of the company were last seen down near 0.9% at $3.52 on the TSX Venture Exchange.

Price: 3.54, Change: -0.01, Percent Change: -0.28